SurveyMonkey Announces Second Quarter 2019 Financial Results

SAN MATEO, Calif.—August 1, 2019 — SurveyMonkey Inc. (“SurveyMonkey”), a leading global survey software company, announced today that its parent company, SVMK Inc. (Nasdaq: SVMK, and collectively with SurveyMonkey referred to as “SVMK”, “we” or “us”), reported second quarter 2019 financial results for the period ended June 30, 2019, and posted a shareholder letter with complete second quarter 2019 financial results and management commentary on its investor relations website at investor.surveymonkey.com.

Q2 2019 Key Results

  • Revenue was $75.1 million for 20% year-over-year growth.
  • Paying users totaled 692,455 compared to 616,111 in Q2 2018, for 12% year-over-year growth, and up 21,593 paying users from Q1 2019, for 3% quarter-over-quarter growth. Approximately 80% of our paying users were on annual plans, up from 75% in Q2 2018 and 78% in Q1 2019.
  • Average revenue per user was $442 compared to $410 in Q2 2018, for 8% year-over-year growth, and up from $423 in Q1 2019, for 4% quarter-over-quarter growth.
  • Enterprise sales revenue was approximately 20% of total revenue, up from approximately 11% in Q2 2018 and 16% in Q1 2019. We ended the quarter with 4,777 enterprise sales customers, up from 2,990 in Q2 2018, for 60% year-over-year growth, and an increase of 868 customers from Q1 2019. This includes a one-time increase of approximately 400 net new enterprise sales customers following the closing of the Usabilla acquisition.
  • GAAP operating margin was (21%) and non-GAAP operating margin was 2%.
  • GAAP net loss was ($18.5) million and Adjusted EBITDA was $10.3 million.
  • GAAP basic and diluted net loss per share was ($0.14). Non-GAAP basic and diluted net loss per share was ($0.01).
  • Net cash provided by operating activities was $13.9 million, free cash flow was $9.8 million, and unlevered free cash flow was $13.3 million, for 19%, 13%, and 18% margin, respectively.
  • Cash and cash equivalents was $154.5 million and total debt was $216.5 million for net debt of $62.0 million.

“With revenue growing 20% year-over-year, our Q2 financial results demonstrate that we continue to execute well against our key growth strategies — selling our enterprise-grade solutions directly to organizations, driving adoption of our collaborative self-serve Teams plans, and expanding our international footprint,” said Zander Lurie, chief executive officer at SurveyMonkey. “Our second quarter results include several key highlights: enterprise sales revenue grew 110% year-over-year; our overall paying user base is now 80% annual; and we opened our cloud-based European data center to accelerate our global expansion. We are entering the second half of this year with incredible momentum and we’re more confident than ever about the opportunity ahead.”

Financial Outlook

Q3 and FY financial outlook

Building on the strong performance in the first half of 2019, we’re increasing our revenue guidance for the full year 2019. Our growth investments continue to yield strong results. We are continuing to invest in efforts that drive enterprise sales, fuel growth in our self-serve channel, and expand our international business.

We will host a conference call today to discuss our Q2 2019 business and financial results. This call is scheduled to begin at 2:00 pm PT / 5:00 pm ET and can be accessed by dialing (866) 417-2046 or (409) 217-8231. To listen to a live audio webcast, please visit SurveyMonkey’s Investor Relations website at investor.surveymonkey.com. A replay of the audio webcast will be available on the same website following the call. A telephonic replay will be available through August 8, 2019 by dialing (855) 859-2056 or (404) 537-3406 and entering passcode 2160748#.

Upcoming Events

Management will be presenting at the 2019 Raymond James SMID Cap Growth Conference in Chicago, IL on Wednesday, August 21, 2019.

About SurveyMonkey

SurveyMonkey is a leading global survey software company on a mission to power the curious. The company’s People Powered Data platform empowers over 17 million active users to measure and understand feedback from employees, customers, website and app users, and the market. SurveyMonkey’s products, enterprise solutions and integrations enable 335,000+ organizations to solve daily challenges, from delivering better customer experiences to increasing employee retention. With SurveyMonkey, organizations around the world can transform feedback into business intelligence that drives growth and innovation.

Investor Relations Contact:
Karim Damji
investors@surveymonkey.com

Media Contact:
Lara Sasken
lsasken@surveymonkey.com

Source: SurveyMonkey Inc.

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